Voltage Metals Corp., ("Voltage" or the "Company") (TSXV: VOLT) is pleased to report final assay results from the diamond drill program at the Company's 100% owned St. Laurent Nickel-Copper-Cobalt Project, located 160 km northeast of Timmins, Ontario. Exploration consisted of seven holes, (2,457m), with borehole EM geophysical surveys completed on six holes. The 2022 program was a follow up to encouraging results from a 2019 program by a previous operator, with SL-19-01 intersecting three separate intervals of >1.0% Ni, and SL-19-03 intersecting 113.4 m 0.22% Ni, 0.17% Cu
Highlights
St. Laurent Nickel Sulphide Mineralized System
The St. Laurent Project displays geological characteristics indicative of a gabbro breccia/conduit hosted style of nickel mineralization, comparable to the Lynn Lake Deposit (28.4 million tons @ 0.91% Ni, 0.49% Cu)1 the Kenbridge deposit (7.5 million tonnes @ 0.58% Ni, 0.32% Cu)2, and the Montcalm Deposit (3.9 million tonnes @ 1.3% Ni, 0.67% Cu, 0.05 Co)3. Characteristics of these systems include, irregular massive sulphide lenses contained within broad intervals of lower grade mineralization, often disrupted by barren xenoliths of gabbro intrusion material and the surrounding wall rock material.
Nickel and sulphur assay data from St Laurent predicts a high nickel tenor4 of 5% Ni for massive sulphides (35% S) in the St. Laurent system. Drilling to date has intersected multiple intervals of wide, lower grade disseminated, stringers and blebby sulphide mineralization.
2022 Drill Hole Result
SL-22-05 was drilled 45 metres up-dip from the three closely spaced mineralized zones intersected in SL-19-01 (1.1% Ni, 0.5% Cu, 503 ppm Co, 5.1% S over 3.6m, 1.3% Ni, 0.5 % Cu, 568 ppm Co, 5.6% S over 4.2m, 1.0% Ni, 0.8% Cu, 506 ppm Co, 4.8% S over 4.7m) coincident with the center of a strong Maxwell Plate EM anomaly. The hole encountered sulphide mineralization at the expected depth with 0.7% Ni, 0.3% Cu over 2.6 m, but was abruptly terminated by the presence of mafic volcanic xenoliths. Several narrow intervals were intersected, including 3.9 m of 0.21% Ni, 0.25% Cu, and a deeper section of 0.8m of 0.81% Ni, 0.14% Cu. The presence of mafic volcanic xenoliths is an expected component of the conduit type system. Identifying the position of the larger xenoliths is important for future drill planning.
SL-22-06 was drilled to test the north-east extension of the mineralized system in the down plunge direction, targeting a deep-strong Maxwell Plate EM anomaly. Non mineralized Gabbro and Diorite were intersected throughout the entirety of hole with no explanation for the anomaly. Follow up Borehole EM surveys have defined a strong, large off-hole anomaly indicating the presence of conductive material continuing in the northeast down-plunge direction.
SL-22-07 was drilled 400 metres in front and oriented back towards SL-19-03. The purpose of the hole was to further define the width and orientation of the low- grade mineralization in SL-19-03, while at the same time testing multiple Maxwell Plate EM anomalies. SL-22-07 intersected 51.8m of 0.24% Ni, 0.18% Cu. The broad zone of mineralization was cut-off early by the presence of a large mafic volcanic xenolith. The mineralized zone in this area is interpreted to be approximately 75 metres wide. Borehole EM surveys have defined a large continuous Maxwell Plate EM anomaly coincident with the broad zone of mineralization, suggesting good continuity to the system.
SL-22-08 was drilled 80 metres east of SL-22-05 to test the edge of a Maxwell Plate EM anomaly. A wide interval of 52.7 metres of 0.12% Ni, 0.09% Cu with a higher-grade interval of 0.25% Ni, 0.18% Cu over 9.0 metres was intersected.
SL-22-09 was drilled from the same setup as SL-22-08 at a steeper dip. SL-22-09 intersected 0.62% Ni, 0.36% Cu over 6.0 m within a broader interval of 23.1 metres of 0.34% Ni, 0.23% Cu. Variation in grade of mineralization between SL-22-09, SL-22-08 drilled 60 metres above, and SL-19-01 drilled 65 metres to the west, highlight the expected variations in this style of a mineralized system. SL-22-09 encountered a large mafic volcanic xenolith interpreted to have cut off a portion of the mineralized zone.
SL-22-10 was drilled to test wide sections of mineralization reported in drill holes PA-2 and PA-4 (1966). Drill casings for these two holes were located in the field, which allows the historical data to be accurately incorporated into the current model. SL-22-10 was positioned between the two older setups and planned to evaluate the western portion of the mineralized system. SL-22-10 intersected 10.3 metres of 0.29% Ni, 0.17% Cu and a second interval of 4.0 metres of 0.70% Ni, 0.44% Cu.
SL-22-11 was drilled from the same setup as SL-22-10 at a shallower dip. Multiple zones of mineralization were intersected throughout the hole, including 5.5 metres of 0.28% Ni, 0.18% Cu, 6.5 metres of 0.22% Ni, 0.21% Cu, 17.5 metres of 0.28% Ni, 0.42% Cu, and 13.0 metres of 0.53% Ni, 0.27% Cu. The mineralized zone is interpreted to be approximately 100 metres thick based on drilling in this area.
Assay results are included in Table 1. Drill intervals in the table are core lengths, as true widths have not been determined due to insufficient drill detail.
Table 1 – St. Laurent 2022 Diamond Drill Program Assay Results
2022 Drill Program
Exploration consisted of seven holes, (2,457m), with borehole EM geophysical surveys completed on six holes. A total of 570 samples, representing 800 metres of core were split for analysis. All drill holes, with the exception of SL-22-06, intersected multiple intervals of sulphide mineralization. The St. Laurent mineralized system has been sporadically tested along 650 metres strike extent, with only 4,792 metres of drilling in three separate programs since 2008. In 1966, 13 holes were competed, with drill logs (limited assay data) provided for 7 of the 13 holes (1,081m). Drill Hole locations for the 2022 program are included in Table 2.
Table 2- 2022 Drill Hole Locations
Borehole EM Surveys
Borehole EM surveys were performed on the majority of 2019 and 2022 drill holes. The interpreted Maxwell Plate modeling is an effective method at tracking the trend of the mineralization and provides a high level of confidence for future drill targeting.
Comment on Results
The 2022 Voltage diamond drill program has improved the geological understanding of the St. Laurent project and greatly expanded the footprint of the mineralized system. Bob Bresee, President of Voltage states "The objective of the 2022 drill program was to identify massive sulphide mineralization, which based on the nickel tenor of this system indicates high grade 5% nickel. The St. Laurent magmatic system includes appreciable amounts of cobalt and PGE's which combined with a high nickel grade provides an extremely desirable exploration target due to the high dollar value of the contained minerals. Although massive sulphides are the primary exploration focus, wide lower grade nickel mineralization in conjunction with the current high metal prices present exploration opportunities to evaluate lower nickel grade, larger volume material. The broad zones of lower grade mineralization at St. Laurent indicate a large continuous system that has been lightly drill tested with 5,873 metres total drilling since 1966, along a strike distance of 650 metres."
Assaying & QAQC
Core was logged, tagged and sawn at the Company's logging facility in Cochrane, Ontario. Samples were transported in sealed bags to ALS Canada Ltd. facility in Timmins for preparation. Pulps were transported to Vancouver, British Columbia for 35 element MEICP41 Aqua regia ICP AES analysis, PGM ICP23 analysis for Au- Pt- Pd analysis, S-IR08 for Sulphur analysis, Cu OG46 analysis for >10000 ppm Cu and NiOG46 analysis for >10000 ppm Ni. the sampling of, and assay data, from drill core is monitored through the implementation of a quality assurance - quality control (QA-QC) program designed to follow industry best practice.
Qualified Person
The St. Laurent 2022 diamond drill project was completed under the direct supervision of Todd Keast, P.Geo, a consultant to Voltage Metals Corp. Todd Keast, P.Geo. is a Qualified Person as defined in National Instrument 43-101. He has reviewed and approved the technical content of this press release.
References:
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Effective immediately, Voltage Metals Corp. is suspended pursuant to CSE Policy 3. The suspension is considered a Regulatory Halt as defined in National Instrument 23-101 Trading Rules. A cease trade order has been issued by the Ontario Securities Commission.
For more information about Cease Trade Orders, visit the Canadian Securities Administrators Cease Trade Order database at www.securities-administrators.ca.
_________________________________
À compter d'aujourd'hui, Voltage Metals Corp. est suspendu conformément à la politique 3 du CSE. La suspension est considérée comme une interruption réglementaire telle que définie dans la Norme canadienne 23-101 sur les règles de négociation. Une interdiction d'opérations a été émise par les commission des valeurs mobilières de l'Ontario.
Pour plus d'informations sur les ordonnances d'interdiction d'opérations, visitez la base de données des Autorités canadiennes en valeurs mobilières sur les ordonnances d'interdiction d'opérations à l'adresse www.securities-administrators.ca
Date: | Le 7 juillet/July 2023 |
Symbol/Symbole: | VOLT |
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Voltage Metals Corp. ("Voltage" or the "Company") (CSE: VOLT) (OTC: VLTMF) is pleased to announce that Alice Margulies, CA, CPA, has been appointed as the Company's interim CFO effective June 8, 2023 bringing her professional expertise in junior mining audit. Ms. Margulies takes over from Nickolas Mah whose resignation as CFO was effective the day prior.
The Company further announces that in consultation with Ms. Margulies and its auditors, it has revised the expected date for filing its outstanding annual financial statements, management's discussion and analysis and the required certifications (the "Issuer Statements") to July 31, 2023 .
As was previously announced on May 5, 2023 , the Company's application for a temporary management cease trade order ("MCTO") under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203"), made on April 18, 2023 , was granted by the Ontario Securities Commission ("OSC") effective May 2 , 2023.
Said application for an MCTO was made on the basis that the Company was unable to file the Issuer Statements on or before the prescribed filing deadline of May 1 , 2023. The Company underwent a business combination transaction in its last financial year (the completion of which was previously announced on March 11, 2022 ), adding to the complexity of the audit of the Issuer Statements and contributing to the filing delay. The Company's recent change of auditors has also contributed to the delay.
The MCTO prohibits trading in securities of the Company by its CEO and CFO until the Issuer Statements are filed and the MCTO is lifted. While the MCTO remains in effect, the general public will continue to be able to trade in the Company's listed securities. By its terms, the MCTO will be revoked two business days following the receipt by the OSC of all filings the Company is required to make under Ontario securities law, or further order of the OSC.
The Company confirms that it will satisfy the provisions of the alternative information guidelines set out under Sections 9 and 10 of NP 12-203 until the Issuer Statements are filed.
About Voltage Metals
Voltage is a critical metals exploration and development company focused on Canadian projects near existing or past-producing mines.
Forward Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by management. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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Voltage Metals Corp. ("Voltage" or the "Company") (CSE: VOLT) (OTC: VLTMF) announces that its application for a temporary management cease trade order ("MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") was granted by the Ontario Securities Commission effective May 2, 2023 .
As previously announced on April 18, 2023 , the Company applied for the MCTO on the basis that it would be unable to file its annual financial statements, management's discussion and analysis and the required certifications (the "Issuer Statements") on or before the prescribed filing deadline of May 1, 2023 .
The Company underwent a business combination transaction in its last financial year (the completion of which was previously announced on March 11, 2022 ), adding to the complexity of the audit of the Issuer Statements and contributing to the filing delay. The Company's recent change of auditors has also contributed to the delay.
The MCTO prohibits trading in securities of the Company by its CEO and CFO until the Issuer Statements are filed and the MCTO is lifted. While the MCTO remains in effect, the general public will continue to be able to trade in the Company's listed securities.
The Company expects to have the audit of the Issuer Statements completed no later than June 30, 2023.
The Company confirms that it will satisfy the provisions of the alternative information guidelines set out under Sections 9 and 10 of NP 12-203 until the Issuer Statements are filed.
Voltage is a critical metals exploration and development company focused on Canadian projects near existing or past-producing mines.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by management. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Voltage Metals Corp.
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Voltage Metals Corp. ("Voltage" or the "Company") (CSE: VOLT) (OTC: VLTMF) announces that Clayton Fisher formerly a director and president of the Company, has resigned effective March 1, 2023 . The Company wishes him well in his future endeavours.
Voltage is a critical metals exploration and development company focused on Canadian projects near existing or past-producing mines.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by management. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Voltage Metals Corp.
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Voltage Metals Corp. ("Voltage" or the "Company") (CSE: VOLT) (OTC: VLTMF) announces that on April 13, 2023 it applied to the Ontario Securities Commission as principal regulator, and its additional regulators, for approval of a temporary management cease trade order ("MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203"). The Company did so in anticipation that it would be unable to file its annual financial statements, management's discussion and analysis and the required certifications (the "Issuer Statements" ) on or before the prescribed filing deadline of May 1, 2023 .
If granted, the MCTO will prohibit trading in securities of the Company by its CEO and CFO and certain other insiders until the Issuer Statements are filed and the MCTO is lifted.
The issuance of an MCTO will generally not affect the ability of persons who are not or have not been management of the Company to trade in its securities.
The Company underwent a business combination transaction in its last financial year (the completion of which was previously announced on March 11, 2022 ), adding to the complexity of the audit of the Issuer Statements and contributing to the filing delay. The Company's recent change of auditors has also contributed to the delay.
The Company expects to have the audit of the Issuer Statements completed no later than June 30, 2023.
The Company confirms that it will satisfy the provisions of the alternative information guidelines set out under Sections 9 and 10 of NP 12-203 until the Issuer Statements are filed.
Voltage is a critical metals exploration and development company focused on Canadian projects near existing or past-producing mines.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by management. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Voltage Metals Corp.
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Ramp Metals (TSXV:RAMP) specializes in battery and base metals, particularly nickel and lithium with three properties, two situated in Northern Saskatchewan, Canada, and one in Nevada, United States. The company's Rottenstone SW Claims is situated along a geological structure that historically yielded the highest-grade nickel and platinum group elements (PGE) in Canada. Rottenstone exhibits similarities to the Nova-Bollinger nickel-copper mine in Western Australia, which was discovered by Sirius Resources and ultimately sold to IGO Limited for AU$1.8 billion. The Nova-Bollinger mine had an estimated resource of 13.1 million tons (Mt) grading 2 percent nickel, 0.8 percent copper, and 0.07 percent cobalt.
Ramp Metals' fully permitted drill program in 2024 consists of four drilling locations with eight holes. The current drill program is focused on testing two of these targets. The first target is positioned at the anomaly within the center of the claims and falls within the "Rottenstone Eye" structure. The second target is an anomaly located outside the eye structure, approximately 3 kilometers east-southeast from the first location. To date, Ramp has successfully drilled four holes for a total of 1,180 meters.
The striking similarity between Rottenstone and Nova-Bollinger mine is encouraging and the appointment of Dr. Mark Bennett, the discoverer of the Nova-Bollinger deposit, as a strategic advisor, reinforces Ramp’s belief in the potential of the Rottenstone property. Bennett has over three decades of experience in establishing mines, and played a key role in multiple discoveries, such as the Wahgnion gold mine, the Thunderbox gold mine, and the Waterloo nickel mine, in addition to the Nova-Bollinger nickel-copper mine. Along with Bennett, Ramp Metals has also appointed leading geologist Scott McLean, a 35-year veteran in the mining industry, as its strategic advisor.
This Ramp Metals profile is part of a paid investor education campaign.*
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Lackluster pricing in the nickel markets is largely the result of the metal's ongoing oversupply position. The largest factor is the continued elevated production rates from Indonesia, which maintains its position as the global leader for the metal. The country produced 1.8 million MT of nickel in 2023, according to the USGS's latest Mineral Commodity Summary, representing half of global supply.
The country’s production has climbed exponentially over the past decade, and this was exacerbated by government initiatives that placed strict limits on the export of raw materials to encourage investment in production and refinement.
In an email to the Investing News Network, Exploration Insights Editor and Analyst Joe Mazumdar wrote, “The growth in EV production and the escalating demand for nickel in batteries prompted the Indonesian government to mandate increased local refining and manufacturing capacity from companies operating in the country.”
Data from S&P Global Market Intelligence provided by Mazumdar showed results of the mandates saw an estimated US$20 billion flowing into the industry in early 2023, with another US$10 billion in undisclosed funding, much of it originating from China.
Despite the lower quality of material coming from Indonesia, the investment was made to shore up supply lines for Chinese battery makers and earmarked for electric vehicle production. However, EV demand has waned through 2023 and into 2024 due to the high-interest rates, range anxiety and charging capacity, increasing nickel stockpiles and contributing to an ongoing oversupply situation.
A report on the nickel market provided by Jason Sappor, senior analyst with the metals and mining research team at S&P Global Commodity Insight, showed that short positions began to accumulate through February and early March on speculation that Indonesian producers were cutting operating rates due to a lack of raw material from mines, which helped push the price up.
The lack of material was caused by delays from a new government approvals process for mining output quotas Indonesia implemented in September 2023. The new system will allow mining companies to apply for approvals every three years instead of every year. The implementation has been slow, which was exacerbated by further delays while the country went through general elections.
The nickel market found additional support on speculation the United States government was eyeing sanctions on nickel supply out of Russia. However, base metals were ultimately not included in the late February sanctions. The price began to decline through the end of March as Indonesian quota approvals accelerated.
According to data from Macquarie Capital provided by Mazumdar, nickel prices slumping below the US$18,000 mark has made approximately 35 percent of production unprofitable, which would jump to 75 percent if the price were to fall below US$15,000.
Mazumdar indicated the pricing challenges have led to cuts from Australian producers like First Quantum (TSX:FM,OTC Pink:FQVLF) and Wyloo Metals which both announced the suspension of their respective Ravensthorpe and Kambalda nickel mining operations. Additionally, major Australian nickel producer BHP (ASX:BHP,NYSE:BHP,LSE:BHP) is considering cuts of its own.
Nickel price, Q1 2024.
Chart via the London Metal Exchange.
French territory New Caledonia’s nickel mining industry is facing severe difficulties due to faltering prices. The French government has been in talks with Glencore (LSE:GLEN,OTC Pink:GLCNF), Eramet (EPA:ERA) and raw material trader Trafigura, who have significant stakes in nickel producers in the country, and has offered a 200 million euro bailout package for the nation. The French government set a March 28 deadline for New Caledonia to agree to its rescue package, but a decision has not yet been reached as of April 11.
Earlier this year, Glencore announced plans to shutter and search for a buyer for its Koniambo operations, which it said has yet to turn a profit and is unsustainable even with government assistance. For its part, Trafigura has declined to contribute bail-out capital for its 19 percent stake in Prony Resources Nouvelle-Caledonie and its Goro mine, which is forcing Prony to find a new investor before it will be able to secure government funding. On April 10, Eramet (EPA:ERA) reached its own deal with France for its subsidiary SLN’s nickel operations that would see the company extending financial guarantees to SLN.
The situation has exacerbated tensions over independence from France, with opponents of the agreement arguing it risks the New Caledonia's sovereignty and that the mining companies aren’t contributing enough to bailouts of the mines, which employ thousands of New Caledonians. Reports on April 10 indicated that protests have turned violent.
While cuts from Australian and New Caledonian miners aren’t expected to shift the market from a surplus, Mazumdar expects it will help to maintain some price stability in the market.
“The most recent forecast projects demand (7 percent CAGR) will grow at a slower pace than demand (8 percent CAGR) over the next several years, which should generate more market surpluses,” he said.
In an email to INN, Ewa Manthey, Commodities Strategist at ING, suggests this places western producers in a challenging position to affect the market, even with cuts to production.
“The recent supply curtailments also limit the supply alternatives to the dominance of Indonesia, where the majority of production is backed by Chinese investment. This comes at a time when the US and the EU are looking to reduce their dependence on third countries to access critical raw materials, including nickel,” Manthey said.
This was affirmed by Mazumdar, who said the US is working to combat the situation through a series of subsidies designed to encourage western producers and aid in the development of new critical minerals projects.
“The US Inflation Reduction Act (IRA) promotes via subsidies sourcing of critical minerals and EV parts from countries with which it has a free trade agreement or a bilateral agreement. Indonesia and China do not have free trade agreements with the US,” Mazumdar said.
He went on to suggest that the biggest benefactors of this plan would be Australia and Canada, but also noted that with prices remaining depressed multi-billion dollar projects would face headwinds to get off the ground.
One way to encourage western production has been creating a separate price scheme with the creation of a green nickel market that plays into western producers' focus on environmental, social and governance (ESG). Green nickel is defined as a low-carbon product that produces less than 20 MT of carbon dioxide per MT of production.
The oversupply of lower-grade laterite has pulled prices down across the board, including for higher-grade and more environmentally friendly sulfide projects like those in Australia and Canada. This has led to the suggestion of premium pricing for green nickel; however, this hasn’t gained much traction on the London Metals Exchange (LME).
“There is little evidence that a premium for ‘green nickel’ producers or developers has much momentum although an operation with low carbon emissions may have a better chance of getting funding from institutional investors in western countries,” Mazumdar said.
Even though there might not be much interest in green nickel on the LME, there have been some vocal proponents like Wyloo’s CEO Luca Giacovazzi. He sees the premium as being essential for the industry, adding the industry should be looking for a new marketplace if the LME is unwilling to pursue a separate listing for green nickel.
The calls for a premium have largely come from western producers that incur higher labor and production costs to meet ESG initiatives, which is happening less amongst their counterparts in China, Indonesia and Russia.
Western producers were caught off guard early in March as PT CNGR Ding Xing New Energy, a joint venture between China’s CNGR Advanced Material (SHA:300919) and Indonesia’s Rigqueza International PTE, applied to be listed as a “good delivery brand” on the LME. The designation would allow the company, which produces Class 1 nickel, to be recognized as meeting responsible sourcing guidelines set by the LME.
If it is approved, which is considered to be likely, this would be the first time an Indonesian company would be represented on the LME. However, there has been pushback from western miners who have noted that production in Indonesia faces a range of ESG and responsible resourcing challenges.
Nickel is a critical metal for the production of batteries to be used in EVs. Generally, battery-grade nickel is processed from the higher quality raw material produced from sulfides, but more recently Chinese production has turned to lower quality laterites. While batteries made from laterite nickel have lower energy density, their cost is also much lower, which may provide key cost savings for EV buyers.
However, with lingering inflation and high interest rates globally, demand for EVs has fallen off over the past two years, which has in turn reduced the demand for nickel.
Meanwhile, despite some slow down due to the approval process, high supply rates from Indonesia have continued into 2024 and there doesn’t seem to be cuts on the horizon from the nation.
These factors have led to a drop in profits and curtailments from large nickel operations in western nations, and made companies unlikely to pursue the construction of new projects in the near term.
“Looking ahead, we believe nickel prices are likely to remain under pressure, at least in the near term, amid a weak macro picture and a sustained market surplus,” Manthey said.
The continued surplus in the market may provide some opportunities for investors looking to get into a critical minerals play at a lower cost, but a reversal may take some time.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
